TRENTON, N.J. — A New Jersey Senate committee on Thursday heard from state officials and health care experts about how sweeping federal changes to Medicaid will affect residents and what they can do to keep coverage, according to the New Jersey Senate Democrats.
The Senate Health and Human Services Committee, chaired by state Sen. Joe Vitale, D-Middlesex, took testimony from the leaders of three state departments and three panels of experts on H.R. 1, the federal budget reconciliation law enacted in July 2025.
“H.R.1 will have massive impacts across New Jersey’s health care system,” Vitale said. “Countless organizations, programs, departments, and, most importantly, children and families will face new challenges as a result. It is incredibly overwhelming. This hearing brought together officials, administrators, and experts to address these changes and ensure the public understands what this means for them.”
According to the release, the law phases in major changes to Medicaid eligibility and financing between 2025 and 2029. They include new work and reporting requirements, more frequent eligibility redeterminations, and new limits on provider payment mechanisms and federal matching rates. The law also ends Medicaid eligibility for several categories of lawfully present immigrants.
The Senate Democrats cited projections that the law will reduce federal Medicaid spending by nearly $900 billion over 10 years and increase the number of uninsured people by nearly 10 million.
In New Jersey, 1.725 million children and adults are enrolled in Medicaid and the Children’s Health Insurance Program, the release said. The changes also affect state departments, hospitals, federally qualified health centers and the state-based health insurance marketplace.
The commissioners of the state departments of Human Services, Banking and Insurance, and Health discussed effects on NJ FamilyCare, GetCoveredNJ and Charity Care stemming from the cuts and expected disenrollment. They stressed coordination among departments so vulnerable residents can find affordable coverage.
Representatives of hospitals, clinics, insurers, counties, professional associations and immigrant rights groups also described how the law will affect them and the people they serve, and outlined strategies for responding.
“With their testimony, we hope to make clear the reality of H.R. 1’s impacts on children, families, and individuals, and connect those most at-risk with alternative programs and resources so that they don’t lose access to service,” Vitale said.
This report is based on a press release from the New Jersey Senate Democrats.
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